The Spring Statement has been announced in Parliament. It is seen as a mini-Budget and sets out key spending and financial priorities for the weeks ahead. The key points were:
Fuel duty will be cut by 5p per litre until March 2023
VAT is cut on energy efficiency measures like solar panels, heat pumps and insulation for homeowners from five per cent to zero, for the next five years
Councils will get another ÂŁ500m for the Household Support Fund from April. This is money that helps vulnerable households.
Homeowners installing energy efficiency materials such as solar panels, heat pumps, or insulation will see VAT cut on these items from 5% to zero for five years
Local authorities will get another ÂŁ500m for the Household Support Fund from April, creating a ÂŁ1bn fund to help vulnerable households with rising living costs
The level at which people pay National Insurance rises to ÂŁ12,750 from July
Chancellor Rishi Sunka said he would cut the basic rate of income tax from 20p to 19p in the pound by the time this Parliament ends.
There will be more help for smaller business with the Employment Allowance, which gives relief for National Insurance payments, rising ÂŁ1000 to ÂŁ5000 from April.
Reacting to the announcement, Norfolk County Council leader Andrew Proctor said: “I welcome the Chancellor’s key announcements to cut fuel duty and to raise the threshold for National Insurance contributions, both of which will help address the pressure on household budgets across Norfolk. Looking ahead, the Chancellor’s pledge to cut income tax in 2024 is another commitment to help people. Taking away VAT on energy saving materials will give an incentive for people to try and reduce energy costs.
“As a local authority who is best placed to help those in need, the doubling of the Household Support Fund is a good way for us to continue to support families in Norfolk.”